As the pleasure product industry navigates persistent consumer spending cuts and rising production costs, industry professionals are emphasizing strategic adaptation over traditional growth models. Kate Kozlova, U.S. Sales Manager for Kiiroo, highlighted the need for businesses to evolve their approaches to survive and thrive in a challenging economic climate.

Adapting to a Shifting Economic Landscape

The current economic slowdown is prompting businesses, particularly within the pleasure product industry, to re-evaluate their strategies. Consumer spending cuts, higher production costs, tariffs, and supply chain uncertainties are creating a challenging environment. Kozlova, a certified device specialist and public information sexologist, noted on September 3, 2026, that while brands maintaining visibility during downturns tend to emerge stronger, success hinges on adaptation rather than adherence to outdated playbooks.

The post-pandemic era, characterized by government stimulus and record-high consumer spending, led to rapid business growth. However, rising inflation has made consumers more selective. Many companies still benchmark against these unusual post-pandemic conditions, but targets based on those sales are no longer realistic. To counteract declining sales from existing customers, businesses must focus on acquiring new ones.

Customers continue to seek products that enhance intimacy and relationships, but they now demand greater value. Retailers are advised to offer expert advice, education, outstanding customer service, and an experience that encourages repeat visits. Manufacturers, similarly, need to move beyond trade show participation as the sole strategy for attracting business. Long-term growth requires building relationships, educating retailers, seeking new accounts through travel, and generating demand year-round.

Strategic Investments and Value Proposition

Branding has become increasingly critical during financial difficulties, as consumers prioritize recognized brands due to increased caution in spending. A strong brand encompasses story, values, personality, expertise, and the overall customer experience. Every interaction, from QR codes and product guides to social media posts, should be interconnected and focused on education rather than solely on selling. The customer journey is often non-linear, involving various touchpoints like Instagram, reviews, educational videos, and website visits before a purchase, whether online or in-store.

Reducing marketing efforts during a recession is a common mistake that can decrease brand visibility. While this may temporarily cut costs, it can hinder a brand's ability to attract customers. Relying solely on B2B partners is insufficient; brands must also generate direct consumer demand. In the pleasure product industry, education is a highly impactful marketing strategy. Blogs, videos, podcasts, tutorials, workshops, and informative social media content can help customers make confident purchasing decisions. Events such as couples nights, educational workshops, and speed dating can also drive foot traffic to stores and foster connections beyond transactions.

Instead of focusing on cost-cutting, businesses should prioritize generating greater value. High-return investments include staff training, retention programs, e-commerce improvements, SEO, educational content, product innovation, AI tools, and reusable photo and video content. Companies that perform best after a recession are typically those that continue investing in areas that generate long-term value, rather than those that reduce spending the most.

A significant error during a slowdown is engaging in price wars. Frequent discounts may boost short-term sales but can train customers to wait for promotions, eroding margins and brand value. The focus should shift from reducing prices to increasing perceived value through better education, product bundles, exceptional service, or exclusive products and gifts with purchase. Customers tend to remember how a brand made them feel, not just the cheapest price.

Embracing the Human Experience and Resilience

Independent retailers possess an advantage over large online stores: the human experience. While products can be purchased online, confidence, expert advice, and genuine conversation with a trusted individual cannot. This necessitates a shift in mindset from selling products to helping customers. Building trust by focusing on improving people's lives encourages repeat business.

Every recession eventually concludes, and businesses that adapt with resilience, remain innovative, and maintain a long-term vision are those that emerge stronger. Avoiding a victim mindset is crucial, as a business's future depends on current choices rather than waiting for economic improvement. Challenges present opportunities for learning, improvement, and strengthening the business. Economic conditions are external, but the response to them is within a business's control. Resilience involves building a business capable of withstanding any economic climate.

Kozlova, who is also known as InBedWithKate on YouTube, brings over a decade of experience in adult retail and manufacturing to her role. She is certified by the American Board of Sexology as a public information sexologist.

Key Facts

  • The pleasure product industry faces challenges from consumer spending cuts and increased production costs.
  • Strategies effective in the post-pandemic era are no longer realistic benchmarks for growth.
  • Businesses need to focus on acquiring new customers and offering greater value, including expert advice and educational content.
  • Branding is crucial during economic downturns, reflecting a company's story, values, and customer experience.
  • Marketing should be viewed as an investment, with education being a highly impactful strategy in the pleasure product industry.
  • High-return investments include staff training, e-commerce improvements, SEO, and product innovation.
  • Avoiding price wars and instead focusing on increasing perceived value through service, education, or exclusive offerings is recommended.
  • Independent retailers can leverage the human experience, expert advice, and genuine conversations to build customer trust.